Law:

Section:

Section 24B of the Indian Income-tax Act, 1922 [Corresponding to section 159 of the Income-tax Act, 1961]-Legal representative-Assessment on income of deceased-Whether assessment on legal representative can be made by including deceased share income from firm for period after his death on the ground that share income received for period after his death should not be assessed separately in the hands of legal representative but should be included along with income of period prior to death-Held, no Facts C, being the partner on a firm of solicitors which was dissolved on 30-9-1953, became a partner of the new firm of solicitors which took over the business of the dissolved firm. C died on 9-9-1954. For the assessment year 1954-55, C had filed a return for the assessment year 1955-56. B, the executor of the will of C, filed two returns-one in respect of income up to the time of C's death, i.e., 1-4-1954 to 9-9-1954, and the other for the remaining period, i.e., 10-9-1954 to 31-3-1955. The ITO completed the assessment in respect of the first return under section 23(3) read with section 24B and in respect of other under section 23(3). In the assessment for the first period he included Rs. 22,231 and Rs. 11,117 as the deceased's share from the dissolved firm and new firm, respectively. In the assessment for the second period, he included Rs. 28,231 as share of deceased from the new firm. On appeal, the AAC held that the share of profit received for the period after C's death should not be assessed separately in the hands of the executor, but should be included along with the income of the period prior to the death of C in a single assess- ment. Accordingly, he enhanced the assessment made on the executor under section 24B by including the sum of Rs. 28,231 also. The Tribunal, however, allowed the assessee's appeal holding that the AAC was not right in including in the assessment, made under section 24B, the receipts after the death but in respect of the work done by the deceased before his death. On reference: Held The impugned sum of Rs. 28,231 could not be said to have accrued to C at the time on or before his death, and hence section 24B was not attracted. Case…

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